Shuffle Master signs Asian distribution contract
LAS VEGAS, Nevada -- (PRESS RELEASE) -- Shuffle Master, Inc. (NASDAQ Global Select Market: SHFL) announced today its appointment of two new distributors to cover the Asian market in Cambodia, Philippines, Thailand, Taiwan, Vietnam, Indonesia, Laos, Brunei, India and Myanmar for a period of three years effective May 5, 2008. The agreements, between CDI Corporation Sdn. Bhd. ("CDI"), a subsidiary of Dreamgate Corporation Berhad ("Dreamgate") in Malaysia, RGB Abbiati Pte Ltd ("Abbiati"), an associate company of Dreamgate, and Shuffle Master Asia Limited, will now give Shuffle Master an even greater presence across Asia through its distributor network.
"Growth in international markets continues to be a key priority for Shuffle Master as we concurrently increase the domestic reach of our products," stated Mark L. Yoseloff, Ph.D., Chairman and Chief Executive Officer. "New distributor relationships are directly tied to immediate placements but even more significantly lay the groundwork for long-term growth and stability. We have known and admired the management of Dreamgate for more than 30 years in the gaming and amusement industry and they were clearly our first choice due to their integrity, their considerable expertise in the region, their excellent reputation and their ability to extend our products to the right audiences."
Under the agreement, Abbiati will distribute Shuffle Master's Utility Products, which include shufflers, chippers, and intelligent card reading shoes as well as Proprietary Table Games ("PTG") and CDI will distribute Shuffle Master's Electronic Table Systems ("ETS") and Electronic Gaming Machines ("EGM").
Steven Lim, Group Sales & Marketing Director of Dreamgate, is pleased with the appointment and looking forward to working with Shuffle Master.
"The ability to deliver Shuffle Master's products complements and extends our existing portfolio and provides superior product lines for our customers in Asia," said Lim. "Shuffle Master's reputation and leadership in gaming equipment makes them an ideal supplier for us and we look forward to a long and successful relationship."
Piers Morgan, President of Shuffle Master Asia Limited, a Shuffle Master International Company, added, "The relationship with CDI and Abbiati is an important step for Shuffle Master to build upon its global distribution platform. This alliance contributes great local market knowledge, service and management and is a strong addition to our team of dedicated distributors."
In recent years, Asia has experienced unprecedented casino growth due in large part to new legalization of gaming in a number of markets in the region as well as the substantial expansion of gaming in Macau. Whereas Macau previously appealed primarily to gambling day-trippers, it has developed into a tourist destination with world-class resorts that feature plenty of amenities. Total gaming revenues in Macau were $10.6 billion in 2007, exceeding expectations and even Las Vegas gaming revenue. Independent of Macau, casino projects in Asia continue to be on the rise and present ample opportunity for operators and suppliers. The $4 billion Vietnam Casino City signals the arrival of the first Las Vegas-style resort-casino in Vietnam and has a targeted completion date of 2009. Las Vegas Sands Corp. plans to open its $ 3.6 billion Marina Bay Sands resort by late 2009 in Singapore. Resorts World at Sentosa in Singapore, scheduled to open in early 2010, expects to draw five million visitors annually. PricewaterhouseCoopers expects gambling revenue in the Philippines to pass $ 1 billion in 2010 due in large part to the opening of a colossal casino complex in Manila Bay. These projects represent only a portion of opportunities in the region and demonstrate the essentiality of having strong access to the Asian gaming market.
Shuffle Master and its subsidiaries have all previously held relationships with RGB Limited for distribution of their products to numerous Asian countries.